Hi there,
And a Happy New Year to one and all!
I have too many media players installed. I use Power DVD for what it says on the box; then there is WMP and Media Player Classic. And until recently, I have watched AVI files with VLC. I say 'until recently' because I have found Pot Player and it is brilliant.
Whatever goes on inside the program, the difference between watching AVI on VLC and PotPlayer is the difference between 60 grade sandpaper and 400 grade. PotPlayer has such smooth rendering of colours.
Give it a try.
Rex